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Purpose: The study is an attempt to find out the most important dimensions of service quality that affect customer satisfaction in Private Sector Insurance Companies and compare the satisfaction level of current customer of Kotak Mahindra and Aviva Life Insurance Company in Jorhat District.
Design/Methodology: Convenient sampling technique, which is a non-probabilistic sampling technique, is used to select the respondents. A convenient sample size of an equal proportion of fifty (50) customers for each of the two private insurance companies, totalling 100 sample size have been selected purposively.
Findings: Most of the customers of both the companies are satisfied. Customers of Kotak Mahindra Life Insurance Company are more satisfied than the Aviva Life Insurance Company. This research explicitly indicates that both the company should give more importance in the Reliability, Assurance and Empathy factors.
Keywords: Customer satisfaction, Relationship Management, Service quality.
Introduction:
The focus on customer-centric marketing philosophies has received considerable attention in the marketing literature by scholars and practitioners. Both practitioners and scholars try to understand, attract, retain and build an intimate long term relationship with their customers. One of the key areas in the customer-centred marketing paradigm is ensuring that existing customers are satisfied. As a result organisations have been studying and developing strategies to satisfy customers and achieve customer delight. It is believed that, a fully satisfied customer is nearly six times more likely to be loyal and to re-purchase and recommend a product/service to family members and friends than a customer who is just satisfied.
Numerous studies have established the fact that customer satisfaction (CS) drives customer retention and loyalty (Heskett et al., 1997; Heskett et al., 1994; Reichheld and Sasser, 1990), It is believed that the average business spends six (6) times more to attract new customers than to retain old customers. Customer retention is, therefore, basically a product of customer loyalty and value which in turn is a function of the level of customer satisfaction or dissatisfaction (CS/D) (Reichheld, 1996). Organisations that have long-term perspective for growth are, therefore, increasingly developing measures to ascertain customer satisfaction/dissatisfaction. Modern business organizations adopt rigorous qualitative and quantitative mechanisms to determine customer satisfaction for effective marketing strategy and decisions. In this regard, measuring customer satisfaction provides feedback on how successful an...